Bias remains with bears as trade conflict escalates
The Australian dollar stands at the back foot on Monday and attempts to continue descend off 0.7000 zone after last week’s action ended in long-legged Doji candle.
Escalation of trade war offsets mixed data from Australia and upbeat China’s Manufacturing PMI (Caixin Aug 50.4 vs 49.8 f/c), keeping near-term action in negative mode.
Daily studies are in full bearish setup and supportive for further weakness, as fresh bears pressure 0.67 support zone, the last obstacle en-route towards key level at 0.6677 (7 Aug low / 2019 low).
Falling 5DMA (0.6732) caps today’s action and marks initial resistance, guarding pivotal 10DMA (0.6750).
Res: 0.6732; 0.6750; 0.6760; 0.6788
Sup: 0.6706; 0.6735; 0.6677; 0.6600